Today there has been a huge rise in the prices of gold and silver. On Wednesday (January 21) morning, gold prices on MCX rose by about 2.70% to a new record high. The reasons behind this surge are fears of US-Europe trade war, weakness of the dollar and strong retail demand. At around 9.30 am on MCX, February futures gold reached a new record high of ₹ 1,54,628 per 10 grams. At the same time, March futures silver was also trading 0.51% higher at ₹ 3,25,326 per kg.
America-Europe tension became the main reason
The situation between the US and the EU on the brink of a major trade war has scared investors. According to media reports, the European Parliament may soon stop the process of approving the US trade agreement signed in July. Apart from this, US President Donald Trump has said that he will not back down from his intention to acquire Greenland.
Announcement of tariff increased concern
Trump has announced the imposition of 10% tariffs on eight European countries from February 1, and has threatened to raise the tariffs to 25% from June 1, 2026. In response, European countries are considering activating the ‘Anti-Corrosion Instrument’, a trade safeguard mechanism designed to counter economic pressure from foreign governments.
Nervous investors turn to safe haven
This fight has made investors nervous, due to which they are running towards safe assets like gold. The US dollar has also weakened due to selling by traders and importers, which has helped gold rise further.
What are the experts saying?
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, due to global uncertainty arising from the increase in trade war and the US President’s ambition to annex Greenland, gold and silver increased their gains and reached new record levels. Global equity markets witnessed a crash, leading to panic selling in riskier assets and supporting safe haven buying in both precious metals.
